Defence Materiel Organisation
SCHEDULE OF COMMITMENTS
as at 30 June 2009

  2009
$'000
2008
$'000
 
BY TYPE
 
Commitments Receivable 1
Commitments Receivable (21,909,609) (21,318,419)
GST Recoverable on Commitments (1,987,301) (1,942,027)
Total Commitments Receivable (23,896,910) (23,260,446)
 
Commitments Payable
Project commitments
Land and buildings 2 157,229 226,883
Property, plant and equipment 3 23,498 21,792
Specialist military equipment 4 16,836,141 17,058,318
Other project commitments 5 733,787 779,514
Total project commitments 17,750,655 18,086,507
 
Other commitments payable
Operating leases 6 2,043 1,959
Research and development 7 17,187 1,500
Materiel Sustainment Agreement commitments 8 6,065,834 5,141,434
Other non-capital commitments 9 144,007 68,694
Total other commitments 6,229,071 5,213,587
Net commitments by type 10 82,816 39,648
 
BY MATURITY
 
Commitments receivable
One year or less (6,373,909) (2,389,609)
From one to five years (13,389,433) (16,337,198)
Over five years (4,133,568) (4,533,639)
Commitments receivable (23,896,910) (23,260,446)
 
Commitments payable
Project commitments
One year or less 4,582,688 1,202,763
From one to five years 10,378,863 13,373,973
Over five years 2,789,104 3,509,771
Total project commitments 17,750,655 18,086,507
 
Other non-capital commitments
One year or less 1,807,275 1,224,678
From one to five years 3,071,849 2,954,282
Over five years 1,347,904 1,032,668
Total other non-capital commitments 6,227,028 5,211,628
 
Operating lease commitments
One year or less 1,737 922
From one to five years 306 1,037
Over five years - -
Total operating lease commitments 2,043 1,959
Net commitments by maturity 82,816 39,648

NB:  Commitments were GST inclusive where relevant

  1. Commitments receivable includes the GST receivable on the gross commitments payable and the revenue due to DMO for activities undertaken on behalf of Defence that give rise to commitments payable.
  2. Outstanding contractual payments for buildings under construction on behalf of Defence under Materiel Acquisition Agreements.
  3. Outstanding contractual payments for Property, Plant and Equipment purchases on behalf of Defence under Materiel Acquisition Agreements (P,P&E under construction) and Materiel Sustainment Agreements.  Also includes outstanding contractual payments for DMO Property, Plant and Equipment.
  4. Outstanding contractual payments for Specialist Military Equipment (SME) purchases on behalf of Defence under Materiel Acquisition Agreements (SME under construction) and Materiel Sustainment Agreements. 
  5. Outstanding contractual payments for Intangibles purchases and project maintenance on behalf of Defence under Materiel Acquisition Agreements and Materiel Sustainment Agreements.  Also includes outstanding contractual payments for DMO Intangibles. 
  6. Leases for motor vehicles to senior executive officers, pool vehicles, data lines and overseas property.  Operating leases included are effectively non-cancellable.
  7. Outstanding commitments on research and development projects undertaken on behalf of Defence.
  8. Outstanding commitments on Materiel Sustainment Agreement activity expenditure incurred on behalf of Defence. 
  9. Includes outstanding commitments on activities covered by DMO’s direct appropriation.
  10. Net commitments in 2007-08 have decreased by $29.691m due to a correction in GST recoverable.
  11. The Department of Defence and DMO are an ATO approved deferred tax customer on the purchase of overseas goods.  As such, the phasing of both GST commitment receivable and payable are based upon DMO estimate of delivery dates.

The above statement should be read in conjunction with the accompanying Notes.